The 10-second takeaway
For the quarter ended June 29 (Q2), Hanesbrands met expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased slightly. GAAP earnings per share expanded significantly.
Margins grew across the board.
Hanesbrands reported revenue of $1.20 billion. The 10 analysts polled by S&P Capital IQ foresaw revenue of $1.21 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.19. The 12 earnings estimates compiled by S&P Capital IQ averaged $0.94 per share. GAAP EPS of $1.19 for Q2 were much higher than the prior-year quarter's $0.01 per share. (The prior-year quarter included -$0.66 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 36.3%, 520 basis points better than the prior-year quarter. Operating margin was 15.1%, 490 basis points better than the prior-year quarter. Net margin was 10.1%, 1,000 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.26 billion. On the bottom line, the average EPS estimate is $1.14.
Next year's average estimate for revenue is $4.59 billion. The average EPS estimate is $3.46.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 197 members out of 237 rating the stock outperform, and 40 members rating it underperform. Among 76 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 66 give Hanesbrands a green thumbs-up, and 10 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Hanesbrands is buy, with an average price target of $56.70.
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